📊 Summary:
A cup and handle pattern appears to have broken out but is now retesting the breakout zone. Price is hovering around support at ₹74–75, but weakness is creeping in, with RSI below 41 and declining momentum.
🔍 Technical Insights:
Pattern: Classic Cup & Handle breakout, but failed to sustain.
Trendline Breakdown: The upward sloping trendline has been breached, signaling possible short-term weakness.
Key Support: ₹74–75 zone (previous breakout resistance).
Resistance Zone: ₹84.50 (recent swing high).
Volume: Declining – indicates lack of buying conviction.
RSI: 40.81 (Bearish momentum), below its moving average (50.41).
✅ Suggestions:
⚠️ For Existing Positions:
Tighten stoploss to below ₹74 (next major support).
Watch price action near ₹74–75. A decisive close below this could drag price toward ₹68 or lower.
🛒 For New Entry (Long):
Avoid fresh entry now unless it reclaims the trendline and ₹78+ with strong volume.
Consider buying only on:
RSI recovery above 50
Price reclaiming ₹78 with bullish candle
🧯 If Support Breaks:
Watch next support at ₹68 and ₹63.
Avoid averaging down blindly unless volume confirms reversal.
📌 Conclusion:
Magellanic Cloud showed promise with a bullish setup, but trendline break and weak RSI point to possible correction or consolidation ahead. Only strength above ₹78 can revalidate the bullish case.
A cup and handle pattern appears to have broken out but is now retesting the breakout zone. Price is hovering around support at ₹74–75, but weakness is creeping in, with RSI below 41 and declining momentum.
🔍 Technical Insights:
Pattern: Classic Cup & Handle breakout, but failed to sustain.
Trendline Breakdown: The upward sloping trendline has been breached, signaling possible short-term weakness.
Key Support: ₹74–75 zone (previous breakout resistance).
Resistance Zone: ₹84.50 (recent swing high).
Volume: Declining – indicates lack of buying conviction.
RSI: 40.81 (Bearish momentum), below its moving average (50.41).
✅ Suggestions:
⚠️ For Existing Positions:
Tighten stoploss to below ₹74 (next major support).
Watch price action near ₹74–75. A decisive close below this could drag price toward ₹68 or lower.
🛒 For New Entry (Long):
Avoid fresh entry now unless it reclaims the trendline and ₹78+ with strong volume.
Consider buying only on:
RSI recovery above 50
Price reclaiming ₹78 with bullish candle
🧯 If Support Breaks:
Watch next support at ₹68 and ₹63.
Avoid averaging down blindly unless volume confirms reversal.
📌 Conclusion:
Magellanic Cloud showed promise with a bullish setup, but trendline break and weak RSI point to possible correction or consolidation ahead. Only strength above ₹78 can revalidate the bullish case.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.